[Intl-tobacco] Chinese tobacco advertising conference

[Robert Weissman]

The Predicament and Developing Trend of Tobacco Ad
Source: Tobacco China, Tuesday, 4/4/00

    The competition in tobacco industry is getting fiercer with each
passing day. To win more customers, tobacco manufacturers have to try
every possible means to give wide publicity to their enterprises and
products. However, the "Law on Advertisement of the People's Republic of
China" and the "Provisional Regulation on Management of Tobacco
Advertisement" impose strict restrictions on tobacco advertisement.

Is the advertisement partially related with tobacco legal? Where the
tobacco advertisement should go? Is there a room for tobacco advertisement
under the socialist market economy in China? These are the questions of
common concern in the trade of advertisement and issues the management
department of advertisement must think over.

The symposium on tobacco advertisement, jointly organized by the General
Office of the State Tobacco Monopoly Administration and the Advertisement
Supervision and Management Department under the State Administration of
Industry and Commerce on March 15, provides a good opportunity for tobacco
advertisement staffs to exchange their views and learn from each other.

Representatives from 25 large-and medium-sized tobacco enterprises
compared notes with officials from the Advertisement Supervision and
Management Department under the State Administration of Industry and
Commerce on various aspects of tobacco advertisement. Participants shared
a view that China's tobacco industry has shifted from the seller's market
to buyer's market. There is a growing need for more tobacco advertisement.
It contradicts severely with the strict restrictions on tobacco
advertisement. Under the pressure of foreign competition after China joins
the World Trade Organization and the movement of banning tobacco smoking,
tobacco enterprises must redouble their efforts to probe a way to survive
and develop.

As an important means in market economy, advertisement is an indispensable
instrument for tobacco enterprises to expand market share. All
participants agree that tobacco is a legal product. Tobacco firms are
legitimate state-owned enterprises and major taxpayers of the state. They
should enjoy a bigger room in advertisement.

Referring to present situation of tobacco advertisement, participants said
that the present-day tobacco advertisement is a creation with wisdom and
culture, forming a unique scene in China's advertisement culture. However,
many of the advertisements are intelligible. Some people raised a query on
the legality, effect and investment results of implicit advertisements.

Many said there is no standard management on tobacco advertisement at the
present stage. The criterion for law-enforcing is different in various
parts of China. Many departments including the industry and commerce,
urban management and public health meddle in tobacco advertisement.
Unjustified charges on tobacco advertisement exist to various extent.

Responding to questions put forward by participants, Qu Jianmin, director
of the Advertisement Supervision and Management Department of the State
Administration of Industry and commerce, said the predicament of tobacco
advertisement clearly reflects the awkward position tobacco industry.
Undoubtedly, tobacco enterprises are the leading taxpayers in China. But
the worldwide development trend is to restrict the growth of tobacco
industry. Therefore, it is impossible for the state to have an explicit
policy on tobacco industry.

Qu said he had acquired a better understanding of the present development
of tobacco industry by exchanging views with representatives of tobacco
enterprises. His department will sort out and study the opinions of
tobacco enterprises and find a solution for existing problems.

He said frankly that in a legal point of view, tobacco industry is
discriminated against worldwide. The state advertisement supervision and
management department should of course abide by the state law. Meanwhile,
it has to make endeavors to promote development of national industry.

Qu said China expects to nurture a number of famous brands to compete with
foreign brands. Consequently, the country adopts a favorable policy
towards brand-name products in tobacco publicity. This is a necessary
measure to protect national industry. He revealed that China would revise
its Advertisement Law next year. He urged tobacco enterprises to act in
the right length and accords with the law in advertisement publicity to
provide a practical basis for the modification of Advertisement Law.
Nevertheless, it is unrealistic to expect a marked improvement in tobacco
advertisement.

Wang Shujun and Zhao Jian, officials with the Advertisement Supervision
and Management Department of the ADIC, respectively gave explanations on a
number of issues including the differentiation of tobacco advertisement
prescribed in the Advertisement Law and the Provisional Regulation on
Management of Tobacco Advertisement, the scope of tobacco advertisement
and financial support from tobacco enterprises.

Addressing the closing session, Zhou Ruizeng, director of the General
Office of the State Tobacco Monopoly Administration, said, under the new
situation, an active publicity of tobacco advertisement has an important
bearing on the survival and development of tobacco industry. We should do
a good job in tobacco publicity within the scope of law and won't do
anything that violates the law. We should improve the quality of tobacco
advertisement and its promotion and pay attention to substantial results.